Just over 10% of the £2.6m conmen defrauded from the States of Guernsey has been returned by police.

It follows its recovery by the police and law enforcement authorities investigating the fraud.

The Treasury and Resources Department paid the money to a third party who claimed to be a major contractor.

Treasury Minister Gavin St Pier said: "While it is only a small proportion of the full amount of which the States was defrauded, it is a welcome first step."

He said: "The States of Guernsey, working with police and law enforcement authorities, will take whatever further steps it can to recover as much of the balance of £2.3m.

"The Treasury and Resources Department is pleased to learn of progress in the police investigation following last week's raids in the UK, and hopes that this progress helps with the recovery of further funds."